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3/30/2010

BRIC's are Building

It is great to see that the BRIC's are helping out other countries. Especially, since that help is going to Africa. With all of the capital that they are receiving, they are slowly increasing productivity as we saw from an earlier article that we discussed in class. With this help they have been able to decrease the debts that they have with the West. Of course this works out to their benefit, because, as the article describes, they are able to receive things like copper and cotton to make finished goods with. We will have to see in the future how great these relationships are for both the BRIC's and Africa.

3 comments:

The article in the post discussed that because the yuan is being kept low, African countries that have heavy ties to China must keep their currencies low as well. I found this article that states the rupee has been appreciating recently. I think it will be very interesting in the coming months to see how this plays out for India and China and their friends in Africa.

I'm not against them investing overseas. Nor am I claiming that there isn't a lot of money being made there and rolled back into new investments.

But ... how does someone in a BRIC country feel when they see things that are needed in those countries, and yet the investment dollars are going to projects in other countries. From that perspective, these investments can't be a good thing.